Correlation Between US Global and Procure Space

Can any of the company-specific risk be diversified away by investing in both US Global and Procure Space at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining US Global and Procure Space into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US Global Jets and Procure Space ETF, you can compare the effects of market volatilities on US Global and Procure Space and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in US Global with a short position of Procure Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Procure Space.

Diversification Opportunities for US Global and Procure Space

0.54

Correlation Coefficient

US Global  Procure Space

Very weak diversification

The 3 months correlation between JETS and Procure is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding US Global Jets and Procure Space ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procure Space ETF and US Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on US Global Jets are associated (or correlated) with Procure Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procure Space ETF has no effect on the direction of US Global i.e., US Global and Procure Space go up and down completely randomly.

Pair Corralation between US Global and Procure Space

Given the investment horizon of 90 days US Global Jets is expected to under-perform the Procure Space. But the etf apears to be less risky and, when comparing its historical volatility, US Global Jets is 1.39 times less risky than Procure Space. The etf trades about -0.16 of its potential returns per unit of risk. The Procure Space ETF is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  2,399  in Procure Space ETF on December 25, 2024 and sell it today you would lose (140.00) from holding Procure Space ETF or give up 5.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

US Global Jets  vs.  Procure Space ETF

US Global Jets

Risk-Adjusted Performance

Very Weak

Over the last 90 days US Global Jets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Procure Space ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days Procure Space ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Procure Space is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with US Global and Procure Space

The main advantage of trading using opposite US Global and Procure Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Procure Space can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Procure Space will offset losses from the drop in Procure Space's long position.

The idea behind US Global Jets and Procure Space ETF pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.